LAW WITHOUT
GOVERNOR'S CHAPTER
SIGNATURE
413
JUNE 22, 2025 PUBLIC LAW
STATE OF MAINE
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IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
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S.P. 679 - L.D. 1733
An Act to Provide Reduced Interest Rates for Logging and Fishing
Operations
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 10 MRSA §1023-Q is enacted to read:
§1023-Q. Improvements to Logging and Fishing Enterprises Loan Program
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the following meanings.
A. "Fishing enterprise" means any enterprise directly or indirectly concerned with the
commercial harvest of wild or aquacultured marine organisms whose primary source
of income is derived from such harvesting. "Fishing enterprise" includes licensed
persons who fish commercially, aquaculturists and cooperatives for persons who fish
commercially.
B. "Fund" means the Improvements to Logging and Fishing Enterprises Loan Fund.
C. "Logging enterprise" means a person who qualifies as an independent contractor
under Title 26, section 1043, subsection 11, paragraph E and who is engaged in
harvesting or hauling trees from forest land for a forest landowner.
2. Program authorized. In accordance with this section, the authority shall establish
and oversee the Improvements to Logging and Fishing Enterprises Loan Program to
increase the availability of capital by financing loans to a logging enterprise or fishing
enterprise.
3. Improvements to Logging and Fishing Enterprises Loan Fund. The
Improvements to Logging and Fishing Enterprises Loan Fund is established within the
authority. The authority may receive, invest and expend on behalf of the fund money from
gifts, grants, bequests, loans and donations in addition to money appropriated or allocated
by the State. Deposits to the fund must be made to and maintained by the authority. Any
money credited to the fund may be used to finance loans only to an eligible logging
enterprise or fishing enterprise for the purposes set forth in subsection 4. Repayment of
these loans and interest on these loans must be credited to the fund. Interest earned on
money in the fund and interest earned on loans made from the fund may be used to pay the
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administrative costs of processing loan applications and servicing and administering the
fund and loans.
4. Purposes of loans. A loan under this section may be made only for the following
purposes:
A. To provide assistance to an existing logging enterprise or fishing enterprise in this
State for the purchase of capital equipment used in commercial harvesting;
B. For the purchase of new or used equipment used in commercial harvesting in
connection with an existing logging enterprise or fishing enterprise;
C. For refinancing existing loans used to finance eligible uses as described in this
subsection; or
D. If the authority approves at the time of loan commitment, to pledge money in the
fund as security for, and to apply money in the fund to, payment of principal, interest
and other amounts due on any term loans insured by the authority to an eligible logging
enterprise or fishing enterprise.
5. Conditions. Logging enterprise and fishing enterprise loans are subject to the
following conditions.
A. A loan for any project under this section, the total cost of which exceeds $200,000,
may not exceed 90% of the total cost of the project. A loan from the fund may not be
provided for such a project unless the applicant demonstrates a commitment of private
funds of at least 5% of the total cost of the project; except that, in order to encourage
the undertaking of cooperative projects by 2 or more logging enterprises or fishing
enterprises, a loan may not be provided unless the cooperating logging enterprises or
fishing enterprises as a group demonstrate a commitment of private funds of at least
5% of the total cost of the project.
B. A loan for any project under this section, the total cost of which is $200,000 or less,
may not exceed 90% of the total cost of the project.
C. A loan must be at the interest rate established pursuant to subsection 6.
6. Interest rate. The interest rate for loans under this section is the federal prime rate
on the date of loan commitment but may not be greater than 2%. A loan current on the
effective date of this subsection may be refinanced at the borrower's request to an interest
rate of the federal prime rate but not greater than 2%.
7. Administrative costs. The authority may charge the fund for its reasonable
administrative costs, not to exceed 3% annually of the fund balance, for administration of
the fund.
8. Report. The authority shall include in its annual report pursuant to section 974 a
summary of loans made under this section during the previous fiscal year, loans outstanding
categorized by the types of enterprises receiving the loans and the effectiveness of the
program. Effectiveness measures may include, but are not limited to, evaluation of the
number of logging enterprises or fishing enterprises retained, expanded or created; the
increase in the number of jobs created or retained; any increased business revenues and
new capital raised; any improved wages paid to employees; and any new capital investment
and increase in profitability.
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 9. Rules. The authority may adopt rules as necessary to implement this section. Rules
adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter
375, subchapter 2-A.
Sec. 2. Appropriations and allocations. The following appropriations and
allocations are made.
FINANCE AUTHORITY OF MAINE
Improvements to Logging and Fishing Enterprises Loan Fund N543
Initiative: Provides base allocations to authorize expenditures of funds in the event that
money is received for the Improvements to Logging and Fishing Enterprises Loan Program.
OTHER SPECIAL REVENUE FUNDS 2025-26 2026-27
All Other $500 $500
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OTHER SPECIAL REVENUE FUNDS TOTAL $500 $500
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